- 54 -
with developers to construct a finished structure or product.
Petitioner purchases concrete, sand, gravel, re-bar, anchor bolts
and rods, expansion anchors, holddowns, straps, and piping for
sewer and drainage and uses those materials to produce sidewalks,
driveways, and foundations. The developer, who does not have any
contractual relationship with the suppliers of concrete, sand,
gravel, and other materials, must accept the finished product
before petitioner is entitled to payment. The materials
represent approximately two-thirds of the cost of the finished
product and the labor approximately one-third. Petitioner is
financially responsible for any deficiencies in the contract
specifications up until the acceptance of the finished product by
the developer. At any particular time, petitioner has on hand
sand, gravel, re-bar, anchor bolts and rods, expansion anchors,
holddowns, straps, and piping for sewer and drainage stored at
various sites, including its place of business.
When all of these facts are taken into consideration, it
becomes evident that petitioner is not solely engaged in
providing labor and that the materials are not merely consumed in
providing a service. If, however, petitioner had contracted to
set forms, pour and finish concrete for a developer who purchased
the sand, gravel, concrete, re-bar, anchor bolts and rods,
expansion anchors, holddowns, straps, and piping for sewer and
drainage, the majority’s finding or holding would then ring
truer. Instead, the facts in this case are difficult to
Page: Previous 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 NextLast modified: May 25, 2011